What to do with the extra money?

Most people who have a stable income are divided into two categories — some save money, collecting it for a “rainy day”, others invest it for the purpose of multiplication. Why is the first approach the most wrong? The fact is that the national currency is constantly subject to inflation and if it does not bring income to its owner, then over time it devalues and the person remains at a loss. How to properly manage money so that it can also work and make a profit.

We have compiled recommendations for you that will help you manage your finances correctly and consciously, even during an economic crisis.

The first rule you should learn is to stop borrowing. First, you need to close all the loans and pay off the existing debts. Give up the habit of borrowing money before you receive your paycheck. You should also stop using credit cards, as this method leads to the fact that you have catastrophically huge debts. Banking organizations have issued cards that provide an interest-free cash loan for a period of two months. After you have spent, the loan is repaid for a month.

It is very difficult to get out of this situation, but if you show perseverance and firmness of mind, refrain from making impulsive and rash purchases, then you will be able to close at least some of the debts. Many people who have received a bonus forget that it is necessary to pay off their debts and immediately run to the shops. Of course, no one canceled shopping, but you need to be able to set priorities. What should I do with my money? Use these funds to repay the loan to the bank or pay the debt to your family. In particular, this applies to small loans that you took out for consumer needs. As for mortgage lending, you will not be able to repay the entire amount in any case, so you can leave it alone. It will be quite enough to make a stable payment. If the bank offers you various loan products, then immediately refuse this offer.

If you do not have debts and loans, but have a certain amount of money, then invest it in your health. Unfortunately, the human body can fail at any time. No one is immune from such situations. You can only take measures that promote your health, for example, do not skimp on quality food, buy a gym membership. Do not neglect physical activity. Good, balanced nutrition and sports will give you excellent health and excellent well-being. As for saving money, it is better to give up cigarettes and alcoholic beverages.

It is also worth noting that voluntary health insurance is now very popular. Of course, in the case of a common cold, you can also apply to a state polyclinic. And if it concerns serious diseases where it is necessary to undergo an examination, it is better to get good insurance. Also, do not try to save money on your teeth, professional cleaning should be carried out every six months. Hygiene is the only way that will save you from caries and other dental diseases. Their treatment can cost you a large sum of money.

If you are a freelancer and don’t know what to do with your money right now, then pay attention to your working tools. The better and better your devices are, the faster you will be able to complete orders, thereby increasing your revenue. For example, you won’t have to restart your old computer several times, and your eyes won’t get tired of the outdated monitor. If you are uncomfortable sitting at a PC, then use the extra money to upgrade your workplace, buy a comfortable computer chair and desk. The pleasure and effect of shopping will come a little later, when you notice that you are less tired and earn more money.

Before you start saving money, protect your home from various troubles. If a pipe starts leaking in your bathroom, then do not delay the moment, sooner or later it will break and then you will have to eliminate the consequences of the accident. Also perform other necessary minor repairs. Remember that the place where you live affects your well-being, mood, and health. A good vacuum cleaner, houseplants and quality bedding will be a great investment.

To sum up — before you start accumulating money, you need to take care of the following aspects of your life::

• loans and debts,
• health,
• workplace,
• house.

Girls should pay attention to their cosmetics. Buy only the most necessary things, some store-bought products can be replaced with home-made analogues. For example, the same scrub is very easy to make yourself. If you need clothes or shoes, then these purchases should be planned in advance, and also train yourself to make a list of necessary products. This way you can avoid unnecessary spending and buy only what you really need for you and your home. Many people have started using online shopping, the reason is that the products presented on such trading platforms can cost you much less than in real stores. If you are interested, you can compare prices for clothing or shoes. Don’t be afraid to look for other ways to save money, and also visit our portal regularly to learn about new ways to properly allocate your budget.

What can I do with my money after I get paid?

After paying off your debts, getting your health and home in order, it’s time to ask yourself how to make and save money. It is worth noting that it is better to distribute finances immediately after receiving them. If you are going to save on a residual basis, then be prepared for the fact that at the end of the month you will have absolutely no money left, so there will be nothing to save.

Divide your salary into several parts and remove the amount that will become inviolable or as they like to say “for a rainy day”. Your task is to raise money for life, if you suddenly find yourself out of work. Thus, you will prepare an airbag for yourself. As for the emotional state, you will feel confident and calm in your soul. Despite the fact that our Ukrainian hryvnia seems stable to you, it is still better to make savings in foreign currency.

Where can I spend the extra money profitably?

Many young people are looking for different investment options. This idea is not new, but it is very valuable. If you are afraid of financial instability, you can put some of the money in a bank account, and invest the other part in stocks. Consultants can help you understand this area. Most banking organizations offer investment services in precious metals or mutual funds. You can find more information on the website of the bank you are interested in.

If you still haven’t decided what to do with the money, then you can consider real estate as an investment option. If you take out a mortgage and rent it out, you will only make a profit if the rent exceeds your monthly payments.